Yelp 4Q15 Earnings Call Notes

Jeremy Stoppelman

Seat Me is 20% of OpenTable size in SF and LA

“And I mentioned earlier in the call, when we are looking at San Francisco now and L.A., we have about 20% of OpenTable size. And that’s looking at that, that full service front of house solution. So we are seeing a lot of really high quality, high traffic restaurants moving over and doing quite well in the product, which as an order of manage less expensive generally than OpenTable.”

Rob Krolik

Expect adjusted EBITDA of 90-105m, stock based comp 83-87m

“For the full year, we expect adjusted EBITDA to range between $90 million and $105 million. Similar to 2014, we expect adjusted EBITDA to ramp up throughout the year with significant increases in the third and fourth quarters, in particular. In addition, we plan to spend slightly less in marketing in the second half of 2016 and also expect lower sales headcount growth in the fourth quarter of 2016 compared to the same period in 2015. We expect stock-based compensation to range between $83 million and $87 million and depreciation and amortization to be approximately 5% of revenue. We expect CapEx to be approximately $30 million.”

Expecting 700m in revenue in 2016. $7B is being spent on Yellow Pages

“I think we want to focus on 2016. And we have given our guidance of about 34% revenue growth, $685 million to $700 million. And that’s today what we are focused on. We think there is a huge opportunity in the market if you look at the fact that there is $7 billion in 2016 that’s being spent on Yellow Pages alone. I mean, most of that money is going to move online and we think we are the perfect place to grab that, given our high ROI.”

Geoff Donaker

It’s a good thing when we hear people say they use Google or Facebook

“Hey, Jason, it’s Geoff. I will take the competition question first. I think what I hear from our sales team is that Google and Facebook do come up, but in general, when they hear Google and Facebook from a local advertiser, that’s a really good sign. That means that the local advertisers who has already started to shift online and it’s a great opportunity for us to talk with them about Yelp advertising as well and we are very confident with the ROI that we offer the typical advertiser. More often frankly, we are dealing with prospects who don’t advertise online at all yet and that’s a more difficult conversation, because you are trying to get somebody effectively out of print and online, which is happening over time, but is a more gradual process.